Industry highlights tracking: the Ministry of industry and information technology issued the 2022 work plan of the industrial Internet special working group. In 2022, it is planned to further promote the application of 5g + industrial Internet, support the transformation and upgrading of internal and external networks of enterprises, and comply with the development trend of industrial communication technologies such as TSN and 5g. It is suggested to pay attention to industrial Internet gateways such as [ Beijing Inhand Networks Technology Co.Ltd(688080) ], [ 3Onedata Co.Ltd(688618) ]; The plan also further improves the industrial Internet cloud platform system and the construction of industrial Internet big data center, and relevant industries continue to benefit.
2022 China optical communication high quality development forum – 400g technology special session was held. The special meeting focused on the upgrading of optical network and the development of 400g technology in the era of “counting from the east to the west”. The participating manufacturers proposed that the construction of computing network is expected to accelerate the application and deployment of 400g and g.654e optical fibers in backbone long-distance optical networks, and the development of silicon optical and CPO also assist 400g and higher speed to realize large-scale applications at the technical level. It is suggested to pay attention to domestic optical module leaders such as [ Zhongji Innolight Co.Ltd(300308) ], optical device manufacturers such as [ Suzhou Tfc Optical Communication Co.Ltd(300394) ], [ Advanced Fiber Resources (Zhuhai) Ltd(300620) ] and optical fiber and cable manufacturers such as [ Jiangsu Zhongtian Technology Co.Ltd(600522) ], [ Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) ].
Key industry data tracking: 1) operator data: according to the data of the Ministry of industry and information technology, the total number of mobile phone users in China reached 1.651 billion in February 2022, including 384 million 5g mobile phone users, a net increase of 29.05 million over the end of the previous year and a penetration rate of 23.3%; 2) 5g base stations: as of February 2022, the total number of 5g base stations has reached 1.506 million; 3) Cloud computing and chip manufacturers: 21q4, bat capital expenditure totaled 25.2 billion yuan (year-on-year + 51%, month on month + 12%); In 21q4, the capital expenditure of the three major overseas cloud manufacturers and meta totaled US $36.553 billion (year-on-year + 26%, month on month + 11.8%). Xinhua’s revenue in March 2022 was NT $433million (year-on-year +66.3%, month on month +29.6%); Intel dcg21q4’s revenue increased by + 20% year-on-year to US $7.3 billion; Amd computing and graphics 21q4 achieved a revenue of $2.6 billion (year-on-year + 32%, month on month + 8%).
Market review: this week, the communication (Shenwan) index fell 1.92%, and the Shanghai and Shenzhen 300 index rose 2.16%. The performance of the sector is weaker than the market, with a relative return of – 4.08%, ranking 24th in the Shenwan industry. There are 147 companies in our communications stock pool, with an average rise or fall of – 6.50% this week.
Investment suggestion: in April, focus on the direction of operators and industrial digitization. The fundamentals of operators continue to recover and improve, with valuation repair opportunities, focusing on China Mobile. In the direction of industrial digitization, we should focus on the track with high flexibility: first, the direction of policy overweight, with more catalysts, such as the Internet of things, Beidou and industrial Internet. Specifically, there are Internet of things modules (focusing on Quectel Wireless Solutions Co.Ltd(603236) , Fibocom Wireless Inc(300638) ), IOT chip ( Rockchip Electronics Co.Ltd(603893) ), industrial Internet gateway ( Beijing Inhand Networks Technology Co.Ltd(688080) , 3Onedata Co.Ltd(688618) ), Beidou application terminal ( Shanghai Huace Navigation Technology Ltd(300627) ). Second, the track combined with new energy and intelligent vehicles has high certainty and high valuation flexibility. Focus on “communication + energy” ( Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , Shenzhen Kstar Science & Technology Co.Ltd(002518) ) and “communication + automobile” ( Suzhou Recodeal Interconnect System Co.Ltd(688800) ). The key recommended combinations in April 2022 are Quectel Wireless Solutions Co.Ltd(603236) , Yealink Network Technology Co.Ltd(300628) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Guangdong Shenling Environmental Systems Co.Ltd(301018) , China Mobile and Suzhou Recodeal Interconnect System Co.Ltd(688800) .
Risk tip: the global epidemic intensifies the risk, 5g investment and construction is less than expected, Sino US trade friction and other external environmental changes.
